BlockFi Secures $250M Revolving Loan From FTX _BEST_
Long before that, Voyager Digital obtained a revolving line of credit from Alameda Research, the quant trading company that FTX CEO Bankman-Fried founded. Alameda purchased 14.96 million shares for $2.34 each.
BlockFi Secures $250M Revolving Loan From FTX
The Sam Bankman-Fried (SBF) FTX and Alameda Research rescue tour is well underway in the broader cryptocurrency space, with both BlockFi and Voyager taking $250 million and $200 million loans respectively from SBF company bailouts.
Centralized banks and exchanges have risk policies, account limits and insurance frameworks designed (with varying levels of success) to insulate themselves from the risks being taken by their counterparties but Solend is a bit more primitive. A single whale account deposited 5.7M SOL ($170M) and borrowed $108M in stablecoins. This loan by itself represented 95% of Solend collateral at the time, with a liquidation price of $22/SOL.3 The loan had also not been touched for several weeks, suggesting the owner either had incredible confidence and resolve or they were struggling to repay the loan and forced to take the risk.
The ongoing aftermath of Terra crashing into Celsius crashing into 3AC seems to be slowing down somewhat. We talked last issue about the concerns around BlockFi\u2019s solvency, but on Tuesday they announced they had secured a $250M revolving credit term sheet with cryptocurrency exchange FTX, similar to the $200M and 15k BTC term sheet that Voyager Invest announced last week from Alameda Research.
Bitcoin miners have been feeling the pain beyond wallet balances, however. The Financial Times reported that shares in listed mining companies like Marathon Digital and Hut 8 have fallen around 40 percent over the past month, with some firms having to take machines offline as energy costs increase, Bitcoin's price drops, and funding has dried up from capital markets. A wave of acquisitions and takeovers are anticipated as a host of mining firms used the bull market to massively expand operations by taking on high-interest debt instead of liquidating Bitcoin reserves. If the price continues to crater or remain at bearish lows, it'll start to threaten lenders who underwrote such loans, "leading to the risk of the creditor getting stuck with bulky, illiquid machinery that loses money every second without power," Blockworks writes.
Crypto lending platform BlockFi announced that it has secured a $250 million revolving credit facility from FTX, BlockFi CEO Zac Prince said in a tweet on Tuesday, and the company subsequently announced in a press release. 041b061a72